Trader and stocksJohannes Röll 23 / February / 20 Visitors: 10
Trader and stocks: selection by different criteria
When a stock trader for the first time forms an investment portfolio, it is quite difficult for him to decide on the applicant companies. Some of them have well-developed business, others have high potential yield, others are reliable, and shares of the fourth have low value. So how does competent trading happen on the stock market?
If you are a trader, you do not need the shares available to you.
People who really work in the stock market say: cheap stocks are very rarely promising. More often than not they are garbage papers, on which one can only lose money. But there is one delicate solution to this problem: intraday trading. You can make money on the daily price fluctuations of paper. Although, in the long run, in exceptional variants, young issuing companies are able to quickly develop business. This means that the share price may increase 2-3 times.
Instead, experts advise paying attention to the securities of mastodon companies. These are market leaders who use the means of scientific and technological progress. Their business is stable and promising, but the profit per share is formed gradually and is rarely large, because, say, doubling a large business is much more difficult than simply expanding its presence to a small entrepreneur.
How do you get cheated on the stock market?
There are several statements that you do not need to believe: the trader and the shares.
"Cheap stocks are quickly generating large returns." Try to minimize the volume of such transactions so as not to lose out. Do not look for big winnings where they are unlikely. In this case, the implemented risk management rules will be much more useful for you.
"The stock market has minimal risks". Crises always happen suddenly. It is better to place a stop-loss at close range to protect yourself from catastrophic losses, nervous breakdown and unwanted life situations.
"You won't have time to keep a transaction log." You'll have to do it if you have to. It is your detailed records that will help you decide what is good or wrong with your trading. In the future, it will allow you to discover your mistakes and avoid them again. This is how the stock trader selects more carefully, and works with them - generating more profit.
"Trading should give maximum strength and time". You will exhale quickly if you try to cover all trading sessions. A person needs sleep, rest and good health. An unhealthy trader cannot trade effectively.
"Pass the training stage quickly." In fact, you need to learn all your life - from those people who actually have outstanding results. Pass by the ears "smart speeches" of speakers on forums and specialized websites. Their fate is a couple of lucrative screenshots that you can brag about in front of newcomers. Those who really make good money, try not to spread it, and modestly occupy the leading places in the Forbes list.
What are the benefits of the stock? Tips from .
The advantages of these securities are that the share quotations do not directly depend on the value of currencies and raw materials stocks. Due to the lack of correlations, trading becomes less dependent on interventions on currency pairs. If a crisis occurs in a country or the world, it may not affect individual corporations. If you invest in the assets of large companies, shares, then it is easier to give a forecast on them than on changes in the market for precious metals or crypt currencies.
If you are a newcomer in the field of trading, then a demo account will contribute to further practical training. With its help, you will be able to study the basic trends, as well as - choose the shares to earn an effective model. The most important advantage - no risk of losing real money. Loss or profit remains virtual.
Already on a demo account you should practice the use of indicators, trading robots and special scripts. Before depositing a large amount of money to your account, make sure that the broker is reliable. You can check the service organization by feedback or on your own experience, using a small amount of money. Before making a deal, be sure to analyze the market, try to penetrate into its intricacies by yourself. Do not resemble a monkey, thoughtlessly pushing buttons. There is nothing more expensive than your own experience, which brings you to success.
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer